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Fudgin [204]
3 years ago
12

Crane Company received proceeds of $799000 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $848000

, pay interest annually on December 31, and have a call price of 105. Crane uses the straight-line method of amortization. What is the amount of interest expense Crane will show with relation to these bonds for the year ended December 31, 2020
Business
1 answer:
sergejj [24]3 years ago
3 0

Answer:

The amount of interest expense Crane will show with relation to these bonds for the year ended December 31, 2020 is $81,220.

Explanation:

This can be calculated as follows:

Annual amortization = (Face value of the bonds - Proceeds from the bonds) / Tenure of the bonds = ($848000 - $799000) / 10 = $49,000 / 10 = $4,900

Interest expenses for 2020 = (Face value of the bonds * Annual interest rate) + Annual amortization = ($848000 * 9%) + $4,900 = $76,320 + $4,900 = $81,220

Therefore, the amount of interest expense Crane will show with relation to these bonds for the year ended December 31, 2020 is $81,220.

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3 years ago
Consider the following scenario analysis:
seropon [69]

Based on the scenario analysis on stocks and bonds, we know the following:

  • Treasury bonds will provide a higher return in a recession than in a boom.
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<h3>What does the scenario analysis on Bonds and Stocks show?</h3>

In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.

The expected return on bonds will be:

= ∑(Probability of Scenario x Returns in scenario)

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Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.

Find out more on stock expected returns at brainly.com/question/18724022.

#SPJ1

3 0
2 years ago
Please help me please
Katyanochek1 [597]
3 i think is ( A )  4th is ( C ) the 5th is ( A ) The 6th is ( B ) 
5 0
3 years ago
Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and othe
Svet_ta [14]

Answer:

A silent partner

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I hope my answer helps you

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3 years ago
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